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CLEARWATER --Â Lincare Holdings Inc. (symbol: LNCR) saw a 10.7% over-the-year increase in revenues in 2011, with $1.85 billion in business generated for the year. But full year profits decreased by 2.3%, down from $181.6 million to $177.3 million.
Lincare's problem lies in its gross margins. Despite the significant increase in revenues for the year, the company's cost of goods sold increased three times faster, up nearly 30% over the year.
The decline in profitability appears to have hurt the Clearwater company's stock price, which is down more than 4% in early Tuesday trading. Shares traded near the $25 mark, down roughly 8% over the past year.
Lincare is one of the nation's largest providers of in-home respiratory therapy and other health care services, serving more than 800,000 customers in 48 U.S. states and Canada through 1,108 local centers.
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